Final Exam Quiz

Collecting cash from customer is

• Operating Activity (Outflow)

• Investing Activity (Inflow)

• Operating Activity (Inflow)

• Financing (Inflow)

Repaying the principal amount of debt is

• Financing Activity (Outflow)

• Investing Activity (Inflow)

• Operating Activity

  (Outllow)

• Financing Activity

  (Inflow)

Selling property, plant, and equipment is investing (cash outflow) activity

• True

• False

• A

• B

• C

• D

Varughese Inc. is working on its cash budget for March. The budgeted beginning cash balance is $33,000. Budgeted cash receipts total $182,000, and budgeted cash disbursements total $191,000. The desired ending cash balance is $40,000.

To attain its desired ending cash balance for Mareli, the company needs to borrow:

• $40,000

• $16,000

• 0

• $64,000

Lending money to another entity

• Investing Activity (Cash Outflow)

• Financing Activity (Cash Inflow)

• Operating Activity

  (Cash Inflow)

• Investing Activity

  (Cash Inflow)

• Operating Activity

  (Cash Outflow)

Spending variance is the difference between the actual amount of a cost and how much it should have been given the actual level of activity.

• TRUE

• FALSE

A Flexible Budget is a budget created before the period begins that is valid only for the planned activity level.

• TRUE

• FALSE

Bris Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000. The desired ending cash balance is $30,000.

 

To attain its desired ending cash balance for January, the company should borrow:

• 17000

• 0

• 30,000

• 43000

• $198,000

• $158,400

• $187,200

• $234,000